I get it all the time…
“Well nowadays I can also buy a $40,000 property in Waco, Texas, what’the big deal about Ecuador?”
OK, well, one thing is the holding costs.
Lets take a look at my 4 bedroom, 3 bath house on the coast near Montanita. I currently rent it out.
$0 for insurance (with so much concrete construction home insurance is not common). Although I should say I still remember that terrible fire. If you were impacted by the Woolsey fire, you will remember to insure your property.
$0 for condo or association fees (not in gated community)
$102 a year in property taxes
$7 electric bill last month (with one single person living on the property full time.)
$4 water bill last month
$2.50 gas (bought one tank of gas, this is also subsidized by the government)
Now lets compare this to a 2 bedroom condo in my home state of Montana, USA currently valued around $180,000…
$1200 annual property taxes
$583 every 3 months association fees.
electricity $80 a month (varies)
water $125 every 3 months
$180 annual insurance
gas $250 (varies)
How about a 2 bedroom house in Montana valued around $350-400k…
$3400 annual property taxes
$1200 annual homeowners insurance
$0 association fees (not in gated community)
electricity/gas $300 a month in winter
$25/month garbage collection
Now, lets throw in the extra cost of my Ecuador ‘property management’ because I do not live nearby (I live in Quito) and I rent it out short term as a vacation rental.
$20 a month to caretaker who visits property twice a week and lets me know if there are any problems, waters grass once a week and takes out the garbage.
$5 each time the caretaker has to go and turn in key or recover key from an entering or exiting guest.
$10 for each cleaning between guests.
The caretaker also is in charge for paying the energy bills, and does NOT live on the property. All guests prepay online, I do all the marketing myself.
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